Another week of bad US data?

Important news for the day

• Wed, 10th, 14:30 CET        US        Core producer price index.
• Thu, 11th, 14:15 CET        EU        ECB interest rate decision.
• Thu, 11th, 14:30 CET        US         Consumer prices index.
• Fri, 12th, 16:00 CET        US        Prelim consumer sentiment.

Important data

After the negative data from the economy last week, also this week might offer further insights into the US economy. Will the tariffs cause further impact into the development of US prices? This week’s producer as well as consumer prices might offer further guidance, here. A rise in prices will likely be acknowledged as well by the FED. On another note the ECB interest rate decision might cause the EUR to move as well. No change in rates is expected, as Christine Lagarde had already slashed rates several times until now. However, any hints for a further cut in rates might also cause the EUR to lose some steam.

Market talk

Last week ended with negative economic data from the US. the economy offered less jobs compared to the expectation, ADP employment data came in weaker and also the Nonfarm payrolls report was a big miss. This might be reason enough for Jerome Powell to finally continue cutting interest rates soon. Yet, the momentum of inflation remains a potential burden as it had picked up steam and with the added Tariffs of Donald Trump might also continue to cause further setbacks. The Dollar still shows some potential momentum against other currencies and in particular the GBP and AUD. Any strength of the Greenback might indicate losses in equities, whereas the continuation of a weaker Dollar could also help boosting US markets in general.

Tendencies in the markets

• Equities positive, USD weaker, BTC positive, ETH sideways, oil weaker, Silver sideways, Gold positive, JPY weaker.